Credit Card Debt Statute of Limitations
Statute Of Limitations On Collecting Debt
Did you know that there is a statute of limitation on collecting debt? That means that if a creditor or debt collection agency is attempting to get you to pay an outstanding debt that has been around a long time, they will be unsuccessful in suing you if your debt has been delinquent longer than the statute of limitations allows.
This Statute Varies From State To State
The credit card debt statute of limitations varies from state to state, and you would be well advised to know what the length of time is both in your home state and in the state in which the creditor is housed. This is because the statute of limitations may apply to either place, depending on the court’s decision. For example, if you live in Florida, whose credit card debt statute of limitations is five years, but the credit card company is based out of Arizona, whose time limit is three years, you may have the option of foregoing payment on the statute of limitations regulations.
The Burden Of Proof Lies With The Consumer
For the most part, it is up to the consumer to prove that a debt has exceeded the statute of limitations and have the debt deleted. Most debt collectors and creditors keep a pretty good eye on the clock and will try to collect before the time allotment is reached, but sometimes they will attempt to collect even on older debts in the hopes that you will not realize that time has elapsed and just pay out of fear or a desire to “get it over and done with.”
Attempts At Debt Collection Can Still Be Made
Of course, even if the debt is fifty years old (as an extreme example), the creditor can still attempt to collect, but they just won’t be successful in suing to collect. That does not stop them from sending letters, making telephone calls, hiring a debt collection agency, or otherwise attempting to collect.
Verify The Debt Before Acting On It
If you suddenly start getting letters about an old debt that you either do not acknowledge as your own, believe has already been paid off, or otherwise have a dispute over, it is best not to make a payment until you have verified the debt, as making even a minimal payment may re-start the credit card debt statute of limitation clock on a debt that would have otherwise been too old to collect.